royalty company. This non-operating
oil and gas firm exposes investors to the tremendous upside of drilling activities
in Pakistan without the downside risk of exploration and production costs. AEGG has
an 18% gross overiding royalty interest on the producing Yasin Block 2468-7 (539,172
acres) in South-Central Pakistan. A successful well was drilled by the operator,
Hycarbex-American Energy Inc. in June 2005 ( Haseeb No. 1 ) that is estimated in
place 196 billion cubic feet of natural gas. A pipeline and surface facility were
completed in December of 2009.
The Companies other core assets consist of the following royalties and convertible
carried working interests in oil and gas leases:

** In both Zamzama North and Sanjawi Blocks, Aegg has the option to
convert its 2.5% carried working interests at any time, on a well by
well basis to a 1.5% royalty, free of the costs of
exploration and development of the leases.

The convertible carried working interest is "carried" (i.e. free of exploration and development costs) as to the initial 3 wells for Zamzama North, and the first 2 wells for Sanjawi.